Nadal was beaten by fellow Spaniard, Nicolas Almagro in a match he seemed set to win after an easy first set.
Nadal's 11-year Barcelona Unbeaten Run Halted By Compatriot
World number one, Rafael Nadal's 41-match unbeaten streak at the Barcelona Open which spanned 11 years, has ended following a quarter finals defeat at the competition.
However things turned round after Nadal lost the second set on a tie-break and was broken twice in the deciding set.
Almagro, who is world number 20 took his second match point to seal a 2-6 7-6 (7-5) 6-4 win.
Barcelona had been Nadal's stronghold where he has not lost a match since 2003 and has won eight titles.
Nadal was also beaten by David Ferrer last week in the quarter-finals in Monte Carlo.
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